How do i file my cash and keep lemon law settlement?

Yes, I may have a solution to your dilemma. I would assume that the 1099 is either a MISC or NEC. and the Turbo Tax program is attempting to entrap you in filing a Schedule C.  Here is a workaround to avoid that. Here is how to report whether it be a 1099 MISC or 1099 NEC.

1. Federal>income and expenses
2. Other common income>Form 1099-MISCorNEC>start or revisit
3. Fill in your 1099 MISC or NEC information including the amount in box 3
4. Describe the reason for this 1099-MISC or NEC. Give it a brief description
5. Does one of these uncommon situations apply? if it is part of a research study you can check that otherwise say none
6. Next it asks Did the settlement involve work that's like XXX main job. You will say no.
7. Then it asks How often did XXX get income for a settlement? You will answer this question according to your circumstance
8. Now this is important.  it asks if Did the fellowship involve an intent to earn money? if you say yes, then you will need to pay self-employment tax. If you didn't expect to benefit financially, then you will say no. Follow your heart.
9. If you paid federal income tax and if it is reported on the form, when you enter your 1099 MISC or NEC, there will be a check box that you will check indicating has other information in boxes 1-18.  You will enter the federal income tax withheld in Box 4 and the State income tax withheld in Box 16 along with the remainder of the state information  in Boxes 17-18.

Hope this helps !!

That work around worked great. Do you know if the IRS will kick it back because the 1099 has the amount in box 10 and I reported it in box 3? Thanks for your help and knowledge. 

The IRS won't "kick it back" as in reject it, but it is always a good idea to keep the form and records with the form in case you are ever audited so you can show that this was from a lawsuit.